Autoblog

General Motors has announced that it wil close its SUV plant in Janesville, Wisconsin by the end of this year in response to the woeful market for utility vehicles. The plant produces the GMC Yukon and Chevy Suburban and employs 1,200 UAW workers. GM was originally planning to shutter the plant sometime before 2010, but deteriorating market conditions have expedited the plant's demise. The news comes only one week after the General announced that it would be closing its Moraine, OH SUV plant early, as well.

Some analysts think GM could pull the plug on its Oshawa truck plant and Mexico facility in Toluca early too since truck sales are down as well, as GM has already announced that those plants are slated for closure. GM top dog Rick Wagoner stated last week that some stamping facilities could also face closure to help align production capabilities to demand.

[Source: CNN Money]

Our heads are still reeling from one of the most tumultuous financial weeks on record, and the auto industry was far from immune. But despite our best efforts to drown our concerns in Racer5 IPA, the hits keep coming, and this time it's courtesy of the New York Times.

The Gray Lady is reporting that General Motors and Chrysler have been in talks about a possible merger for the past month, that "negotiations are not certain to produce a deal," "would most likely still take weeks to work out" and that two unnamed sources say that the chances of the merger going through are "50-50." Obfuscate much?

With GM's stock prices ending the week below $5 a share and Cerberus – the private equity firm that owns Chrysler – grasping at the flimsiest of straws, including continued talks with Nissan/Renault, a merger of unequals is two parts disturbing and one part intriguing.

Cerberus' people haven't been returning phone calls and the only comment offered to the NYT from the General's spokesperson, Tony Cervone, was, "Without referencing that specific rumor, as we've often said at GM officials routinely discuss issues of mutual interest with other automakers." Broad, unclear and exactly what we'd expect.

The merger of GM and Chrysler would put Cerberus in charge of an "unspecified equity stake" in the corporation, making the two-headed General-Chrysler (or Chrysler Motors?) the world's largest automaker, controlling over 35 percent of the U.S. vehicle market, causing rifts among brand faithful and offering more potential (vehicle) cannibalization than the Donner Party. Not to mention both automakers' labor contracts, supplier dealers and slipping market share. Shocked? Don't be. We give it a snowball's chance on the Sun. Thanks to ALL who tipped in.

UPDATE: Official statement from Lori McTavish, Executive Director, Communications, Chrysler LLC:

Chrysler LLC as a matter of policy does not confirm or disclose the nature of its private business meetings. As we have said, the Company is looking at a number of potential global partnerships as it explores growth opportunities around the world. Beyond those partnerships already announced however, Chrysler has not formed any new agreements and has no further announcements to make at this time.

[Source: NYT]
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Word has it there is an eight-month waiting list for the Audi R8 in the car's home market of Germany. Here in the good ol' U.S. of A., the 50 units we get per month are not nearly enough for all of the interested buyers. Well, with V10, convertible and possibly diesel versions in the works, we can't imagine that demand will subside anytime soon. You might think that Audi would be smart to amp up production to handle the high demand, especially with those new versions coming soon, but that isn't gonna happen according to Audi. Seems they can only make 27 R8s a month day and no more. That should keep the R8 variations very scarce and very dear.

For those lucky enough to have the coinage and a place in line, there is more news. Car and Driver talked to Michael Dick, Audi's member of the board of management for technical development, who told them the company expects to sell around 80% with V10 flavor. That version goes on sale next year, with drop-tops following soon after in Europe. Yanks will have to wait another year with 2011 models showing up in '10.

Other tidbits gleaned from the interview: Pricing hasn't been set, the diesel might be Euro-only if it even makes it to production, and a little brother R4 was never in the cards with the TT-RS and possible Audi R3 version of the VW roadster filling out the dance card well enough. We'll keep our fingers crossed that there are enough V10s available so we can get one in our garage at least.


[Source: Car and Driver]

J.D. Power and Associates, the influential industry tracking firm, warned that the global auto market may "outright collapse" due to the lack of available credit and the general global economic conditions in 2009. According to the company, credit market restructuring, fewer leasing options, and declining owner equity are adding additional stress to an already burdened market. Don't turn to the automotive markets in China, Europe, or India either -- they are expected to slow next year as well. Much of the domestic sales decline is attributed to consumers delaying vehicle purchases (their studies indicate people are keeping their vehicles four months longer in 2008, compared to 2007). Other contributing factors are the drop in leasing activity, and the loss of fleet sales (down to 2.8 million from 3.3 million last year). While the automotive sales decline over the summer made this a buyer's market, willing consumers who venture into showrooms today are finding dealerships eager to sell, but banks aversive about lending.

[Source: Automotive News, subs. req'd]

Chrysler has managed to stay out of the doom and gloom news for a few weeks now, which goes to show that going private can have its benefits. But things couldn't stay quiet forever, and as if the company needed something else to deal with, it's now in row with German transmission supplier Getrag over a potentially failed joint venture.

Chrysler uses Getrag double-clutch transmissions (DCT) in the Euro-version Dodge Journey (seen above), and is planning on adding the Euro Avenger and Sebring to the DCT lineup. Getrag signed an agreement with Chrysler to build a factory in the U.S. that would also supply Chrylser's American products with DCTs, and in return for Chrylser agreeing to get such transmissions only from Getrag, Getrag would get $300 million to finance and tool the factory.

According to Getrag, it only intended to borrow the funds if said funds were guaranteed by the German government. According to the German government, it would only guarantee the $300 million loan if Chrysler put that same amount in an escrow account to guarantee repayment. According to Chrysler, it had no idea of such an arrangement, and Getrag never should have signed the agreement if it meant Chrysler needed to back Getrag's loan with its own cash. And that's how court cases are made. While the factory remains in limbo, Chrysler needs to find another supplier for DCTs for its American cars, and do it in a hurry.

[Source: Automotive News, sub. req'd]

Toyota builds many of its U.S. market vehicles right here in America. Among them are the Toyota Tacoma, Sienna minivan and Sequoia SUV, which is built alongside its Tundra full-size truck sibling. For the most part, they are all meant to be sold in the States, their primary market. It's no secret that sales of these big SUVs and trucks are way down, and Toyota doesn't want to idle its plants if it can help it. Therefore, the Japanese automaker is rumored to be in the midst of sending these light trucks out of the country. The Tacoma, for instance, could be sent to Mexico from Toyota's plant in Baja, California. To keep the plant in Princeton, Indiana running, the Sienna could be exported to Latin America and the gas-guzzling Sequoia to the Middle East, a place where oil supplies are obviously not in danger of dwindling.

[Source: Automotive News - sub. req'd]

The rumormill is a funny thing, and sometimes it can run amok. This appears to be one of those times. The DigitalCorvettes.com forum posted a note earlier this evening saying that Corvette ZR1 production has been halted (Bowling Green is shut down this week, so no Vettes are being built at the moment) and suggesting that the ZR1 may be cancelled. A post on dealer Rick "Corvette" Conti's blog, linked in the referenced DigitalCorvettes thread, added to the intrigue.

Autoblog has contacted GM's Terry Rhadigan, who handles global communications for the Chevrolet brand. We presented the DigitalCorvettes link and asked for an official response. His was very clear:

"Not true."

The last aardvark inspired minivan has passed through the doors of GM's Doraville, GA assembly facility. The plant, which opened in 1947, has four developers vying to get their hands on the 165-acre parcel. About 1,500 workers have been idled due to the closing, which was a long time coming. The Doraville plant's closing is an unfortunate consequence of the old GM, and its divestiture is intended to aid General Motors as it continues clawing its way back from the brink.

We can't say the U-Platform vans will be missed. Though significantly changed from its inception as the Lumina APV with its odd styling, the Uplander was a swing of the pendulum to the other side of weird. Smack dab in the middle was the normal, yet lackluster, Venture. None of the platform's iterations managed to ignite buyer passions, coming up short against the competition, and lately completely crushed by the Odyssey/Sienna 1-2 punch, with a kick in the head from the Grand Caravan for good measure.

[Source: Auto News - sub req]

Sure, the Chevrolet Impala and Buick LaCrosse are not the most exciting models in GM's lineup, but the Oshawa, Ontario plant that's been cranking out well-assembled W-platform vehicles for years has won a rare honor from J.D. Power and Associates. Power's Founder's Award is reserved for people or corporations that J.D and friends feel are uncommonly dedicated to continual improvement for customers. Oshawa has racked up plenty of Gold and Silver plant awards, and J.D. Power's senior VP for US automotive practice, Gary Dilts, was on hand to present the award to plant manager Dan Hermer and Chris Buckley, president of CAW local 222. It's a scarce bit of positive news about a domestic automaker, and the fact that the plant has demonstrated such a drive to turn out high quality products bodes well for the Camaro, which is set to start rolling out of the Oshawa complex soon.

[Source: J.D. Power]

HUMMER's up for sale, and General Motors is looking around the house for other items to include in its yard sale. During a presentation to Deutsche Bank, GM's powertrain plant in Strasbourg was added to the For Sale listings by Treasurer walter Borst. Together, the HUMMER brand and the French transmission plant could bring up to $4 billion. GM's likely not done raiding the attic, either. A list of other salable assets is currently being drawn up as The General continues attempts at righting its ship.

A selloff of HUMMER probably doesn't mean much for the brand's lineup in the immediate future. A new owner would be purchasing the name moreso than the GM truck-based H2 and H3. New models based off some other architecture will take a considerable amount of time to work up; it'd likely mirror what's going on with Land Rover and Jaguar under Tata's ownership.

[Source: Inside Line]